Russia registers historical record grain harvest.
While European farmers face ever-increasing energy and fertilizer costs which have gravely undermined the sowing season and thereby future harvests, Russia registered a record harvest of grain, even though harvesting is still ongoing.
RIA Novosti reports that from the data of the Ministry of Agriculture, to date, 147.5 million tons have been already collected and the agricultural department expects to collect 150 million tons once the harvest is complete.
The previous record was reached by Russian farmers in 2017, when they harvested 135.5 million tons of grain.
According to the head of the Ministry of Agriculture Dmitry Patrushev, the ministry plans to purchase up to 3 million tons of grain for the so-named intervention fund by the end of the year. Grain purchases for the fund have been made every day since August, Patrushev said
“We have already purchased about 900 thousand tons from manufacturers at good prices in the current conditions,”
Russia’s agricultural intervention fund is an interesting concept. Basically, the state buys products from farmers when international market prices are low, and sells them on the export market in case of a strong international market price increase. Previously, state interventions were carried out only in the grain market, however, in June 2021 it was decided to extend it to the sugar market.
While Russia promised poorer countries that it would give them priority and discounted prices when it comes to the export of grain, no such favours will be extended to those states listed as ‘hostile’ or ‘unfriendly’.
Thanks to European sanctions, when the time comes, lest we choose to starve, we will have to procure Russian grain at grossly inflated international market prices and will probably have to do so in Rubles.